FINANCE

Dutch courage, please

Michael Burton advocates a Dutch model in which political parties have to offer their fiscal plans up to independent scrutiny before an election.

The Dutch have a statutory system in which all political parties have to run their fiscal plans past a ‘fiscal council' before an election. We could do with such a body here to put politicians on the spot about how they intend to either achieve eye-watering and often unrealistic deficit targets or fund grandiose tax pledges. Instead, we have the Office for Budget Responsibility and various thinks-tanks to fill the information gap as best they can.

The OBR delivered its own economic and fiscal outlook for 2019/20 the day of the Autumn Statement. Among its more eye-catching conclusions are that the budget deficit is set to fall by only £6.3bn this year to £91.3bn, half the amount predicted by the OBR only last March, and mainly due to lower than expected tax revenues. This is the second smallest year-on-year reduction since 2009/10.

Michael Burton

Popular articles by Michael Burton

SUBSCRIBE TO CONTINUE READING

Get unlimited access to The MJ with a subscription, plus a weekly copy of The MJ magazine sent directly to you door and inbox.

Subscribe

Full website content includes additional, exclusive commentary and analysis on the issues affecting local government.

Login

Already a subscriber?